The European Union has announced provisional application of its landmark trade agreement with South America's Mercosur bloc, advancing one of the world's largest free trade zones despite mounting opposition from France and European farmers. The decision, confirmed by EU Commission President Ursula von der Leyen on February 27, 2026, follows recent ratifications by Argentina and Uruguay.
Provisional Application Sparks Debate
While the deal eliminates tariffs on over 90% of goods between the 30 trillion USD economic blocs, French officials decry the move as "damaging to European institutions." Agriculture Minister Annie Genevard warned of intensified competition for EU farmers, particularly in beef and ethanol markets where South American producers hold cost advantages.
Agricultural Concerns Loom Large
Protests have erupted across Europe since the agreement's signing in January 2026, with Spanish farmers blockading Madrid streets earlier this month. The EU Commission maintains it has implemented safeguards, including quota systems and geographic indicators for protected products like Italian cheeses and German meats.
Von der Leyen emphasized the pact's strategic value: "This creates unprecedented access for 700 million consumers. Our SMEs gain new markets while maintaining environmental and labor standards." The deal now awaits European Parliament approval and a European Court of Justice review addressing deforestation concerns.
